Stay up-to-date with the latest developments in securities law through access to both news and all statutes and regulations. Find relevant corporate filings through a searchable EDGAR database. And...
By Lydia Beyoud
New York State’s top financial regulator threw its support behind the operations of virtual currency exchange bitFlyer USA on June 22, even as its Japanese parent company, bitFlyer Inc. came under regulatory scrutiny in its home country the same day.
bitFlyer USA is one of a handful of exchanges to have received the New York Department of Financial Services’s “BitLicense” for cryptocurrency companies. The state’s licensing process is seen as the most rigorous in the country.
“Although Bitflyer Japan is separate and distinct from the company’s US operations, DFS is working closely with our regulated entity to preserve the continued sound operation of Bitflyer USA and to protect consumers,” the agency said in a June 22 statement.
“This action further reinforces and supports the necessity of robust cryptocurrency regulation and cooperation among DFS and global regulators,” the DFS said.
Parent company bitFlyer Inc. is one of six Japan-based exchanges to receive an improvement order from the Japanese Financial Services Agency.
The Japanese regulator has asked the exchanges to improve their internal auditing, anti-money laundering, and identity verification methods, among other actions, for certain existing customers. The other exchanges are Bitbank Ltd., BTC Box Corp., BITPoint Japan Co., Ltd., Tech Bureau Inc., and Quoine Corp. The companies are expected to submit their improvement plans by July 23. The price of bitcoin tumbled approximately 9 percent on some indices following the news, falling to some of its lowest prices this year.
bitFlyer Inc. said it has temporarily halted new account openings in Japan while it re-examines identities for some of its existing customers.
The exchange’s European operations are separate and unaffected by the Japanese regulatory action.
“bitFlyer USA values the regulatory relationship with NYDFS, and also appreciates the department’s concern and duty to protect New York customers,” a spokeswoman for bitFlyer USA told Bloomberg Law in an emailed statement.
The agency’s statement “also reiterates the point that bitFlyer USA is a separate legal entity from bitFlyer, Inc. (Japan) and as such operates its operations and compliance independently from the Japanese business,” the company spokeswoman said. “Importantly, no deficiencies have been found in bitFlyer USA.”
To contact the reporter on this story: Lydia Beyoud in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Michael Ferullo at email@example.com
Copyright © 2018 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)